Economic indicators

The Gross National Product (GNP). The Gross National Product measures the economic performance of the whole economy. This indicator consists, at macro scale, of the sum of consumption spending, investment spending, government spending, and net trade. The gross national product refers to the

sum of all goods and services produced by United States residents, either in the United States or abroad.

The Gross Domestic Product (GDP). The Gross Domestic Product refers to the sum of all goods and services produced in the United States, either by domestic or foreign companies. The differences between the two are nominal in the case of the economy of the United States. GDP figures are more

popular outside the United States. In order to make it easier to compare the performances of different

economies, the United States also releases GDP figures.

Consumption Spending. Consumption is made possible by personal income and discretionary income. The decision by consumers to spend or to save is psychological in nature. Consumer confidence is also measured as an important indicator of the propensity of consumers who have discretionary income to switch from saving to buying.

Investment Spending. Investment — or gross private domestic spending — consists of fixed investment and inventories.

Government Spending. Government spending is very influential in terms of both sheer size and its

impact on other economic indicators, due to special expenditures. For instance, United States military

expenditures had a significant role in total U.S. employment until 1990. The defense cuts that occurred at the time increased unemployment figures in the short run.

Net Trade. Net trade is another major component of the GNP. Worldwide internationalization and

the economic and political developments since 1980 have had a sharp impact on the United States' ability to compete overseas. The U.S. trade deficit of the past decades has slowed down the overall GNP. GNP can be approached in two ways: flow of product and flow of cost.